Caterpillar Hikes Quarterly Payout and Boosts Share Buyback Plan
- CEO cites ‘robust’ free cash flow from main segment for move
- Caterpillar’s share buyback program climbs to $21.8 billion
Caterpillar Inc. machinery in Poughkeepsie, New York.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
Caterpillar Inc. hiked its dividend by about 8% and added $20 billion to its share buyback program after seeing strong performance from its division best known for making iconic yellow heavy-duty machinery.
The company’s board approved an 11 cent increase to its quarterly payout, boosting the dividend to $1.41 per share and payable Aug. 20, the Irving, Texas-based company said Wednesday in a statement. Caterpillar’s additional share buyback authorization lifts the program’s total to $21.8 billion and has no expiry date.